ESM / EFSF: The sixth package for the relief of the Greek debt was approved – Regling’s Message

The sixth package of measures for the Greek debt was approved today by the Board of Directors of the European Financial Stability Facility (EFSF).

In particular, it was decided to return to Greece 122.5 million euros paid by the country for interest in the period 17 June 2021 – 1 January 2022.

At the same time, in the framework of the debt relief measures, on December 22, 2021, the European Stability Mechanism (ESM), acting as a representative of the euro area member states and after their approval, made a transfer of 644.42 million euros to Greece. This corresponds to the revenues from the central banks’ participation in the SMP and ANFA programs.

“Greece has continued its progress by implementing reforms in the difficult conditions of the Covid-19 pandemic. The government has made reforms in the area of ​​public finance management, adopted remedial measures against energy monopolies, and simplified investment licensing.

In addition, it has made good progress in the privatization and governance of state-owned enterprises, social welfare and public administration. The European institutions considered that Greece had made sufficient progress towards the reform commitments in the first half of 2021. This paved the way for the next installment of the debt relief measures related to these commitments “, said the CEO of the ESM and CEO EFSF Advisor Klaus Regling.

He added: “Greece has recovered quickly from the pandemic crisis in 2021, recovering all production losses from the previous year. The prospects for this year and beyond are encouraging thanks to the positive growth dynamics and the impetus from the Recovery Fund. That said, public debt remains very high, stressing the importance of returning to a strong fiscal position as in the pre-pandemic period. Reform efforts should be continued to improve the resilience of the financial sector and to clear government arrears.”